Friday 17 July 2009

Looking for Japanese Yen to recover close to 90.00 - Commerzbank

FXstreet.com (Barcelona) - After testing three times the 91.80 strong support (July 8, 10 and 11), USD/JPY rose to post 94.45 as 1-week high, thus pair started to falls to levels close to 93.30 yesterday. Currently the pair is trading around 93.74, 0.05% above today's opening price and closing the week with 1.45% gains from 92.43, Monday opening price.

The current week is the second of six positive week since the pair traded 98.90 in the early June. On the month, USD/JPY is falling 2.60% from 96.23 July the 1st opening price.

Karen Jones, Analyst at Commerzbank, comments the Yen to recover further and test 90.00 support in the following three weeks as pair is trading in a downchannel: "USD/JPY as suspected failed to make much impression beyond the 94.10/40 resistance and the intraday focus has shifted to nearby support. The market is currently being contained lower within the confines of a downchannel. This downchannel currently offers resistance at 97.16 and support at 91.40. The top of the channel is reinforced by its 100 day ma at 97.09 and our overall negative bias is entrenched while capped by 91.09/16. Loss of minor support at 93.00 will leave pressure back on the downside and we look for a breach of the 91.75/40 support to trigger a slide to 90.15 enroute to the 87.10 lows."

Jones expects a negative trend, taking pair to 90.15 level in the following three weeks: "Shorter term (1 - 3 weeks): Negative, target 90.15."

Asian Shares End Mostly Higher But Jakarta Stks Dn On Blasts

Asian Shares End Mostly Higher But Jakarta Stks Dn On Blasts

SINGAPORE (Dow Jones)--Most Asian share markets ended Friday's trading on a buoyant note to take home weekly gains, with commodity and shipping stocks broadly advancing on hopes of an economic recovery.

Indonesian stocks and currency tumbled after bomb blasts at two luxury hotels in Jakarta killed at least nine people and injured 50. But losses were pared during the course of the day as investors remained optimistic about the country's economic and political prospects.

"Global factors are still in favor of Indonesia. Pessimism over the U.S. economy is receding, encouraging global investors to reenter emerging markets, including Indonesia," said Standard Chartered economist Eric Sugandi.

Indonesia's main share index tumbled 2.7% in early trading, but recovered somewhat and closed down 0.6% at 2106.35. Shares of PT Holcim Indonesia fell 3.8%. Chief Executive Timothy Mackay was among those killed in the bomb blasts, a company official said. Among other Indonesian shares, Bakrie & Brothers shed 2.3%, Bumi Resources declined 1.1% and Bank Negara Indonesia also lost 1.1%.

In currency markets, the U.S. dollar jumped as high as 10190 rupiah, but also pared gains and was recently buying 10150 rupiah. "Fundamentals in Indonesia are very, very strong," added Craig Chan, a currency strategist with Nomura Securities.

Shares in Japan, Hong Kong, Australia, South Korea and Taiwan stretched their gains into a fourth straight session.

Japan's Nikkei 225 Average rose 0.6% to 9395.32, with trading volumes modest ahead of a three-day weekend, given Monday's national holiday.

Hong Kong's Hang Seng Index jumped 2.4% to 18805.66 and India's Sensex surged 2.8% in afternoon trading. Australia's S&P/ASX 200 inched up 0.1%, South Korea's Kospi gained 0.6%, Taiwan's Taiex rose 1%, New Zealand's NZX 50 advanced 0.2% and Singapore's Straits Times Index climbed 1.3%.

BNP Paribas analyst John Hetherington said the bullish tone in Asian markets was probably because of earnings growth expected next year.

"On average, our analysts expect earnings this year to fall 6% in Asia...Next year, however, is a completely different story, thanks to a low base after two years of falling profits. Our analysts project a remarkable 32% rebound in earnings," he added.

Dow Jones Industrial Average futures were recently down 19 points in screen trade. Investors were still watching news from U.S. lender CIT Group. Large bondholders were discussing a plan to exchange $5 billion in debt for equity in the company, which was also trying to raise emergency funds to avert a bankruptcy filing, said a person familiar with the matter.

Still, "investors are reluctant to buy (heavily) because of concerns over CIT Group's possible bankruptcy filing, which could come during Japan's long weekend," said Yumi Nishimura, market analyst at Daiwa Securities SMBC. Japanese markets will be shut Monday.

China's Shanghai Composite gained 0.2%, erasing early losses. There were some concerns of monetary tightening in the wake of strong economic data released over the last few days, but a few economists didn't see that happening anytime soon.

"China's economy is in better shape than many other countries, but it doesn't have a proper social safety net. Until Beijing feels more comfortable about job creation, we think it will avoid symbolically significant tightening measures, such as rate hikes, to avoid crushing confidence," Credit Suisse research analyst Dong Tao wrote in a report.

Energy and shipping shares were broadly higher, aided by an overnight increase in commodity prices. Woodside Petroleum gained 2.9% and BHP Billiton rose 0.8% in Sydney, Cnooc climbed 1.7% and China Cosco Holdings advanced 2.1% in Hong Kong, while Mitsui O.S.K. Lines gained 0.7% in Tokyo. Neptune Orient Lines surged 5.7% in Singapore and Cairn India rose 1.3%, while Shipping Corp. of India advanced 1.8%.

Shares of Nissan Motor rose 2.5% on a Nikkei newspaper report it was aiming to develop its own technology for hybrid vehicles and plans to launch a hybrid minivan in Japan in 2011.

NEC Corp. sank 8.9% in Tokyo after the Yomiuri Shimbun reported it was looking to raise capital. NEC said in a statement there was no truth to the report it had made such a decision, though a person familiar with the matter told Dow Jones Newswires that NEC was currently considering raising capital to strengthen its finances.

Technology stocks were leading in Korea with LG Display gaining 2.3% after reporting better-than-expected second quarter earnings and an upbeat outlook.

Currency market trade was choppy. There was a mild inclination to buy the safe-haven Japanese yen on the Jakarta explosions, though Asian currencies generally held up fairly well.

The euro was at 132.27 yen, from 132.63 yen in late New York trade, with the dollar at 93.73 yen from 93.75 yen. The euro was at $1.4108, from $1.4145.

Spot gold was bid at $935.10 a troy ounce, down $2.90 cents from late New York. August Nymex crude oil futures were at $61.72 a barrel on Globex, down 30 cents from New York.

-Dow Jones Newswires; +65-6415-4140; markettalk@dowjones.com

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July 17, 2009 05:48 ET (09:48 GMT)


Copyright 2009 Dow Jones & Company, Inc.

European stocks rises; Dollar slightly higher

FXstreet.com (Barcelona) - Stock markets in Europe are rising today's Friday session, following the green numbers in Asia, on economic recovery optimism despite speculations on CIT Group will file for bankruptcy. Exports fell more than imports in Europe in May, indicating that trade remains substantially weaker than last year after the credit crisis collapses.

DJ Eurostoxx 50 is rising 0.77% so far today, FTSE 100 advances 0.70%, CAC 40 posts 0.80% increases, DAX index climbs 0.95% today's session and the IBEX 35 is reaching 0.85% daily gains.

In Asia, Nikkei index has posted 0.55% gains, Hang Seng jumped 2.42% today and S&P/ASX 200 advanced 0.13% on Friday.

Eurozone n.s.a trade balance reduced its surplus in May to 1.9B from 2.7B posted in April. s.a trade balance posts 800 millions surplus in May from 300 millions deficit posted in April.

EUR/USD is falling 0.25% so far today from opening price to the current 1.4090/1.4500. GBP/USD has declined 0.65% on the day to the current 1.6300/10 after posting 1.6285 as intra-day low.

USD/JPY continues trading in a narrow range between 93.55 and 93.75 and USD/CHF is rising 0.35% so far today after jumping to test 1.0790, yesterday's high.

DATA SNAP: Euro-Zone Trade Surplus Shrinks In May

DATA SNAP: Euro-Zone Trade Surplus Shrinks In May

By Nicholas Winning

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--The 16 countries that use the euro posted a smaller-than-expected trade surplus in May as exports fell more than imports from April, data released by the European Union's Eurostat statistics agency showed Friday.

Non-seasonally adjusted figures showed the euro zone's surplus narrowed to EUR1.9 billion in May from EUR2.7 billion in April. Economists were expecting a EUR2.7 billion surplus, according to a Dow Jones Newswires survey last week.

The figures showed euro-zone exports totaled EUR97.7 billion in May, down 24% on the year, while imports totaled EUR95.8 billion, a 27% drop compared with May 2008. In April, euro-zone exports totaled EUR102.7 billion, while imports totaled EUR99.9 billion, Eurostat said.

The data indicate that trade remains substantially weaker than last year after the credit crisis plunged the euro zone and many of its main trading partners into the deepest recession since World War II.

Trade among the 16 euro-zone member states shrank to EUR101.3 billion in May from EUR103.6 billion in April, leaving it 23% weaker on the year.

The euro zone's trade deficit for the first five months of the year shrank to EUR6.5 billion from EUR13.4 billion during the same period in 2008, but the data showed exports and imports for the January-May period were both 23% weaker on the year.

Eurostat Web site: www.europa.eu.int/en/comm/eurostat

-By Nicholas Winning, Dow Jones Newswires, +44 207 842 9498; ick.winning@dowjones.com

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July 17, 2009 05:00 ET (09:00 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Currency Rates Of Coffee Producing, Consuming Countries

Currency Rates Of Coffee Producing, Consuming Countries

LONDON (Dow Jones)--U.S. dollar exchange rates as of 09:39 GMT July 17, compared with 10:36 GMT July 16.

Producers:

17/07/09 (16/07/09)

Angolan Kwanza AON 77.805 (74.971)
Bolivian Boliviano BOB 7.02 (7.02)
Brazil Real BRL 1.9306 (1.9345)
Burundi Franc BIF 464 (470)
*CFA Franc XOF 2019.5 (2047.5)
Cuban Peso CUP 36 (36)
Ecuadorean Sucre ECS 8.748 (8.748)
El Salvador Colon SVC 8.1315 (8.1315)
Ethiopian Birr ETB 11.335745 (11.3405)
Guatemala Quetzal GTQ 8.1315 (8.1315)
Guinea Franc GNS 4843.235 (4837.75)
Indian Rupee INR 48.67 (48.79)
Indonesian Rupiah IDR 10135 (10100)
Kenyan Shilling KES 76.85 (77.2)
Malawi Kwacha MWK 140.05 (141.05)
Mexican Peso MXN 13.58 (13.5705)
Nicaragua Cordoba NIC 19.788565 (19.7935)
Papua New Guinea Kina PGK 2.6059 (2.6116)
Peruvian New Sol PES 3.017035 (3.02375)
Philippines Peso PHP 48.1 (48.075)
Vietnam Dong VND 17805 (17805)
Zambian Kwacha ZMK 5175.5 (5175.5)
Zimbabwe Dollar ZWD 445.5 (444.5)

CONSUMERS:


Danish Krone DKK 5.2813 (5.2907)
#Euro EUR 1.4098 (1.4074)
Japanese Yen JPY 93.625 (93.565)
Norwegian Krone NOK 6.3939 (6.4091)
Swedish Krona SEK 7.8422 (7.8286)
Swiss Franc CHF 1.0776 (1.0774)

(Currency rates for the Colombian Peso COP, Costa Rican Colon CRC, Dominican Republic DOP, Haiti Gourde HTG, Honduras Lempira HNL and Venezuelan Bolivar VEB are unavailable due to a problem with the source.)

* = The CFA Franc is the common currency of 14 African countries which are
members of the Franc zone:
XOF = Benin, Burkina, Ivory Coast, Guinnea Bissau, Mali, Niger, Senegal
and Togo under the Central Bank of the West African States.
XAF = Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea
and Gabon, under the Bank of the Central African States.

# = Currencies that are quoted in U.S. dollars per unit of currency.
All other currencies are quoted in units of currency per U.S. dollar.

Source: OANDA Corp and yahoo.com.


-By Michael Haddon, Dow Jones Newswires; 4420-7842-9289; michael.haddon@dowjones.com

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July 17, 2009 04:42 ET (08:42 GMT)


Copyright 2009 Dow Jones & Company, Inc.

GLOBAL MARKETS: European Stocks Up;US Earnings Lift Sentiment

GLOBAL MARKETS: European Stocks Up;US Earnings Lift Sentiment

By Andrea Tryphonides
Of DOW JONES NEWSWIRES


LONDON (Dow Jones)--European stocks traded in positive territory Friday, again taking their lead from the U.S. equity markets and earnings, with the latter surprising to the upside, led by JP Morgan's.

Mike Lenhoff, chief strategist at Brewin Dolphin said: "The results coming through are very supportive of a more promising outlook and the markets have been responding to that... I think there is a greater sense of conviction than there was before that a recovery is happening."

By 0755 GMT, the pan-European Stoxx 600 index was up 0.5% at 210.8. London's FTSE 100 was up 0.6% at 4388.0, Frankfurt's DAX increased 0.5% to 4985.0 and Paris's CAC-40 was 0.6% higher to 3220.1.

Gains were widespread across sectors Friday, although volumes were not exciting. With little in the way of fundamental macroeconomic data due for release investors had their eyes on further U.S. earnings for direction. These include news from banking giants Citigroup and Bank of America, as well as industrial conglomerate General Electric.

Meanwhile in Europe, autos led the market higher. Renault was up 1.3% at EUR25.9 despite announcing a 16.5% fall in global vehicle sales in the first-half of the year. The French car maker added that it has achieved a significantly positive free cash flow in this period but its net profit will be hit by a negative operating margin.

Elsewhere, British Airways soared 3.1% to 136.3 pence after it said it was set to raise GBP600 million through a bond issue and bank facilities to increase its liquidity. Also, the trustees of the group's pension fund agreed to release some bank guarantees back to the airline, making up to $540 million available for the airline to draw in cash.

In financials, Swedbank gained 3.3% to SEK50.0 after stating that it would review all commitments in the Baltic states and Ukraine and would continue to cut jobs, mainly in Eastern Europe, as bad loans in the region pushed the bank towards a worse-than-expected second-quarter loss.

On Thursday, U.S. stocks again showed strength, as the Dow Jones Industrial Average gained 1.1% to 8711.8. The Nasdaq Composite gained 1.2% to 1885.0 and the Standard & Poor's 500 rose 0.9%, to 940.7.

Investors are "positioning themselves to raise equity exposure as the earnings season unfolds," said Fred Dickson, market strategist at D.A. Davidson.

However, Ian Horsley, index trader at Spreadex.com, said: "Despite better than expected results from the major banks it's very much been a stealth rally and investors may well be looking for a break of the recent highs of 8877 [on the DJIA] before they sense real optimism."

Elsewhere, Asian stock markets were mostly higher Friday, although gains were tentative before the weekend.

Japan's Nikkei 225 closed up 0.6%, South Korea's Kospi Composite up 0.6% and Hong Kong's Hang Seng index was 2.4% higher.

By contrast, Indonesia's share market fell 0.9% after bomb blasts at two luxury hotels in the Jakarta business district killed at least nine people and injured 50.

In the currency markets, the euro fell slightly against the yen and dollar Friday as players sold the common currency to lock in profits on its overnight rise.

But overall sentiment towards the European currency remained stable and it could resume rising if stock prices keep going up and U.S. financial institutions' earnings turn out to be robust, dealers said.

At 0810 GMT, the euro stood at $1.4088, compared with $1.4148 late Thursday in New York, and at Y131.91 versus Y132.89.

Turning to crude, the oil market edged lower Friday amid a bout of profit taking after prices topped $62 a barrel Thursday, lifted by stronger equities.

At 0810 GMT, the August crude contract on Globex stood at $61.72 per barrel, down 30 cents, having settled Thursday at $62.02 per barrel, 48 cents higher, on the New York Mercantile Exchange, the highest settlement price since July 7.

Also at 0810 GMT, spot gold stood at $936.25/oz, down from $937.35 in late New York trading.

European government bond markets were firmer, helped by some gains in U.S. Treasurys late Thursday and a degree of safe-haven buying after the blasts in Jakarta.

At 0815 GMT, the September bund contract stood at 121.71, 0.23 higher.

-By Andrea Tryphonides, Dow Jones Newswires; +44-20-7842-9281; andrea.tryphonides@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=OgBNNDYHfkY7HuExqLXI%2FA%3D%3D. You can use this link on the day this article is published and the following day.

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July 17, 2009 04:17 ET (08:17 GMT)


Copyright 2009 Dow Jones & Company, Inc.

DATA SNAP:Italy May Indus Orders In 1st Mo Rise Since Jul 08

DATA SNAP:Italy May Indus Orders In 1st Mo Rise Since Jul 08

By Liam Moloney and Giada Zampano

Of DOW JONES NEWSWIRES

ROME (Dow Jones)--Italian industrial orders rose moderately in May on the month, advancing for the first time since July of last year, as foreign and national demand climbed, statistics agency Istat said Friday.

Industrial orders fell an unadjusted 31.0% on the year in May, a drop for the eighth month in a row, after slipping 32.2% in April and 26.0% in March.

On the month, industrial orders rose a seasonally-adjusted 0.4% compared with a 3.6% fall in April.

Industrial sales were down an unadjusted 25.3% on the year in May. Sales on the month decreased 1.1% in May as national sales fell by 2.7%, while foreign industrial sales were up 3.1%.

Web site: www.istat.it

-By Liam Moloney and Giada Zampano, Dow Jones Newswires; +39 06 6976 6924; liam.moloney@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=OgBNNDYHfkY7HuExqLXI%2FA%3D%3D. You can use this link on the day this article is published and the following day.

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July 17, 2009 04:11 ET (08:11 GMT)


Copyright 2009 Dow Jones & Company, Inc.

5th UPDATE: Terror Strikes On Jakarta Hotels Leave 9 Dead

5th UPDATE: Terror Strikes On Jakarta Hotels Leave 9 Dead

(Recasts with quotes from Indonesian president. Minor edits, amends headline.)

   JAKARTA -(Dow Jones)- Two large bomb blasts hit the Ritz-Carlton and JW Marriott hotels in the Indonesian capital on Friday, killing nine and wounding nearly 50 in the first terror attack in the Southeast Asian nation since 2005. 


Suspicion immediately fell on regional terror network Jemaah Islamiyah and one of its master bombmakers and strategists - Noordin Mohammed Top.

President Susilo Bambang Yudhoyono meanwhile, said his government would step up security measures following the "inhuman" act of terror. He said he didn't know which group was responsible for the attacks yet.

Several foreigners were among the dead in the twin hotel explosions early Friday morning in Jakarta. Nearly 50 people were also wounded, Agence France-Presse said.

The streets outside the two hotels, which sit adjacent to each other in the Mega Kuningan business district in central Jakarta were covered in shattered glass and debris.

White smoke billowed in the aftermath of the blast. Dazed and bloodied workers and hotel guests milled outside soon after the explosions.

The facade of the Ritz-Carlton was ripped off after an explosion in the restaurant while people were having breakfast, police said.

An unexploded bomb was later found at the Marriott, the local TVOne station said. It has since been detonated.

Authorities were acting on the assumption that the bombing was carried out by Muslim extremists, said a senior counterterrorism official, the Wall Street Journal reported.

Chief security minister Widodo AS said nine people were killed and 41 wounded. He said the blasts were caused by high-level explosives.

At a news conference, President Yudhoyono alleged there was a plot to prevent his reelection, calling the attackers "spreaders of death."

"Today, bombings have been perpetrated by terrorist groups. I cannot yet say whether these groups are the same ones" that have carried out attacks in the past, Yudhoyono said in a speech broadcast on local television. "This may have a wide impact on our economy, on tourism, and the business climate."

Indonesia's share market initially slumped 2.6% after the blasts, but the index came off its lows to be down 1.5% just before midday local time, as some investors opted to focus on the country's economic and political prospects.

"Global factors are still in favor of Indonesia. Pessimism over the U.S. economy is receding, encouraging global investors to reenter emerging markets, including Indonesia," said Standard Chartered economist Eric Sugandi.

Still, Ben Sukma, chairman of Indonesia's tourism association, ASITA, admitted there'll "definitely be an impact" on tourism following the strikes.

Australia has already urged citizens to reconsider the need to travel to the archipelago, as Prime Minister Kevin Rudd described the attacks as "barbaric." Singapore meanwhile, urged citizens to be vigilant.

"We continue to receive credible information that terrorists could be planning attacks in Indonesia and that Bali remains an attractive target for terrorists," an Australian foreign ministry statement read.

Four foreigners were killed, The Associated Press and local Metro TV said. The blasts may have come from the front and the basement of the hotels, the Antara news agency said.

Among those killed was PT Holcim Indonesia's (SMCB.JK) chief executive Timothy Mackay. He was at the Marriott, a company official said, and died from his injuries in hospital.

Shares of Holcim Indonesia (SMCB.JK) were down 3.8% shortly after the news broke of Mackay's passing.

Citizens from the U.S, Netherlands, India, Canada, Australia, South Korea were among the injured, reports said.

The first explosion took place around 7:40 a.m. local time (0045 GMT) with the second occurring minutes later.

"I heard at least three explosions and now white smoke is billowing," a fund manager at a foreign securities company told Dow Jones Newswires by phone.

Indonesia, the world's most populous Muslim nation, hasn't suffered a major terrorist attack since the 2005 restaurant bombings on the resort island of Bali. The JW Marriott was the target of an earlier bombing in 2003 that killed 12.

That blast was blamed on regional terror group Jemaah Islamiyah, as was the 2002 Bali nightclub bombings that killed 202 people.

Jemaah Islamiyah is largely believed to have been weakened since it carried out a series of high-profile terror strikes that began in Bali in 2002.

Analysts believe the network is weakened after a number of its leaders were arrested and some prosecuted. Three of the 2002 Bali bombers have also been executed.

But one JI mastermind - Malaysian Noordin Mohammed Top - is still on the run and widely believed to be in Indonesia. He has been described by the U.S. government as one of the "most dangerous members" of Jemaah Islamiyah.

"He is believed to be a top recruiter, strategist, and fundraiser," Noordin's description on the U.S. "Rewards for Justice" Web site read.

"He is a charismatic leader and a recruiter, and has proven to be innovative and single-minded in his desire to implement the Al Qaeda line and target Western interests," it said.

Also Friday, English soccer team Manchester United - who were supposed to stay at the Ritz-Carlton - said they would cancel the Jakarta leg of their Asian tour. They were scheduled to arrive Sunday for a sold-out game against an Indonesian selection.

The Jakarta strikes appear to be the latest luxury hotels targeted in a series of recent attacks in Asia.

More than 50 people were killed and more than 250 injured after a suicide bomber blew up an explosive-laden truck outside the Marriott in Islamabad in September last year.

In India's commercial capital Mumbai, nearly 170 people were killed after gunmen laid siege to the landmark Taj Mahal and Oberoi hotels last November. Analysts have long warned hotels were a prime target for terrorists.

   -By Jakarta Bureau, Dow Jones Newswires; 62-21 39831277; I-Made.Sentana@dowjones.com



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July 17, 2009 04:05 ET (08:05 GMT)


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CURRENCIES: Dollar Gains In Asia, Taking Cues From Stocks

CURRENCIES: Dollar Gains In Asia, Taking Cues From Stocks

By Lisa Twaronite

The dollar gained in Asian trading Friday, taking its cues from mostly firmer equities markets across the region and shrugging off earlier losses on reports of fatal blasts in Indonesia.

The yen had gained earlier, on reports that a series of blasts hit hotels in central Jakarta early Friday, claiming at least nine lives.

Foreign exchange markets "are again taking their lead from equities, with U.S. dollar and Japanese yen generally firmer," said Adam Cole, global head of FX strategy at RBC Capital Markets.

The dollar bought 93.72 yen, up from 93.28 yen in late North American trading on Thursday. Tokyo trading volume was reported to be light, ahead of a Japanese market holiday on Monday.

The dollar index (DXY), which tracks the greenback against a trade-weighted basket of six major rivals, was at 79.311, up from 79.222 late Thursday.

The euro bought $1.4129, down from $1.4146 late Thursday, while the British pound fetched $1.6404, down from $1.6440.

Currencies markets had little reaction to reports that U.S. Commerce Secretary Gary Locke said the U.S. wants China to move more quickly to a free-floating exchange rate mechanism for the yuan.

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July 17, 2009 03:21 ET (07:21 GMT)

4th UPDATE: Deadly Blasts Hit Jakarta Luxury Hotels; 9 Dead

4th UPDATE: Deadly Blasts Hit Jakarta Luxury Hotels; 9 Dead

(Adds details on unexploded bomb, comments from Australian PM, Manchester United canceling Jakarta leg of Asian tour.)

JAKARTA -(Dow Jones)- Two large bomb blasts hit the Ritz-Carlton and JW Marriott hotels in the Indonesian capital on Friday, killing nine.

It was the first terror attack in the Southeast Asian nation since 2005, and suspicion immediately fell on regional terror network Jemaah Islamiyah and one of its leading bombmakers and strategists - Noordin Mohammed Top.

Several foreigners were among the dead in the twin hotel explosions early Friday morning in Jakarta. Nearly 50 people were also wounded, Agence France-Presse said.

The streets outside the two hotels, which sit adjacent to each other in the Mega Kuningan business district in central Jakarta were covered in shattered glass and debris.

White smoke billowed in the aftermath of the blast. The facade of the Ritz-Carlton was ripped off after an explosion in the restaurant while people were having breakfast, police said.

An unexploded bomb was later found at the Marriott, the local TVOne station said. It has since been detonated.

Authorities were acting on the assumption that the bombing was carried out by Muslim extremists, said a senior counterterrorism official, the Wall Street Journal reported.

Chief security minister Widodo AS said nine people were killed and 41 wounded. He said the blasts were caused by high-level explosives.

Indonesia's share market initially slumped 2.6% after the blasts, but the index came off its lows to be down 1.5% just before midday local time, as some investors opted to focus on the country's economic and political prospects.

"Global factors are still in favor of Indonesia. Pessimism over the U.S. economy is receding, encouraging global investors to reenter emerging markets, including Indonesia," said Standard Chartered economist Eric Sugandi.

Still, Ben Sukma, chairman of Indonesia's tourism association, ASITA, admitted there'll "definitely be an impact" on tourism following the strikes.

Australia has already urged citizens to reconsider the need to travel to the archipelago, as Prime Minister Kevin Rudd described the attacks as "barbaric."

"We continue to receive credible information that terrorists could be planning attacks in Indonesia and that Bali remains an attractive target for terrorists," an Australian foreign ministry statement read.

Four foreigners were killed, The Associated Press and local Metro TV said. The blasts may have come from the front and the basement of the hotels, the Antara news agency said.

Among those killed was PT Holcim Indonesia's (SMCB.JK) chief executive Timothy Mackay. He was at the Marriott, a company official said, and died from his injuries in hospital.

Shares of Holcim Indonesia (SMCB.JK) were down 3.8% shortly after the news broke of Mackay's passing.

Three Dutch citizens, an Australian and a South Korean were among the injured, reports said.

The first explosion took place around 7:40 a.m. local time (0045 GMT) with the second occurring minutes later.

Police have sealed off the area near the Ritz-Carlton and the JW Marriott in the Mega Kuningan district. "I heard at least three explosions and now white smoke is billowing," a fund manager at a foreign securities company told Dow Jones Newswires by phone.

Indonesia, the world's most populous Muslim nation - hasn't suffered a major terrorist attack since the 2005 restaurant bombings on the resort island of Bali. The JW Marriott was the target of an earlier bombing in 2003, in which 12 people died.

That blast was blamed on regional terror group Jemaah Islamiyah, as was the 2002 Bali nightclub bombings that killed 202 people. Jemaah Islamiyah is largely believed to have been weakened since it carried out a series of high-profile terror strikes that began in Bali in 2002.

Analysts believe the network is weakened after a number of its leaders were arrested and some prosecuted. Three of the 2002 Bali bombers have also been executed.

But one leader - Malaysian Noordin Mohammed Top - is still on the run and widely believed to be in Indonesia. He has been described by the U.S. government as one of the "most dangerous members" of Jemaah Islamiyah.

"He is believed to be a top recruiter, strategist, and fundraiser," Noordin's description on the U.S. "Rewards for Justice" read.

"He is a charismatic leader and a recruiter, and has proven to be innovative and single-minded in his desire to implement the Al Qaeda line and target Western interests," it said. Also Friday, English soccer team Manchester United - who were supposed to stay at the Ritz-Carlton - said they would cancel the Jakarta leg of their Asian tour. They were scheduled to arrive Sunday for a sold-out game against an Indonesian selection.

The Jakarta strikes appear to be the latest luxury hotels targeted in a series of recent attacks in Asia.

More than 50 people were killed and more than 250 injured after a suicide bomber blew up an explosive-laden truck outside the Marriott in Islamabad in September last year.

In India's commercial capital Mumbai, nearly 170 people were killed after gunmen laid siege to the landmark Taj Mahal and Oberoi hotels last November. Analysts have long warned hotels were a prime target for terrorists.

   -By Jakarta Bureau, Dow Jones Newswires; 62-21 39831277; I-Made.Sentana@dowjones.com



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(END) Dow Jones Newswires

July 17, 2009 03:19 ET (07:19 GMT)


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France To Exit Econ Slump In 2H 2010 - Report

France To Exit Econ Slump In 2H 2010 - Report

PARIS (Dow Jones)--The French economy will pick up from the current slump in the second half of next year, Stimulus Minister Patrick Devedjian told daily Le Parisien in an interview published Friday.

Devedjian added that while France hasn't exited the downturn yet, he sees "numerous signs of improvement."

Newspaper Web site: www.leparisien.fr

-By Paris Bureau, Dow Jones Newswires; 33-1-4017 1740

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July 17, 2009 03:09 ET (07:09 GMT)


Copyright 2009 Dow Jones & Company, Inc.


Forex: Pound falls quickly to break 1.6360 against Dollar

FXstreet.com (Barcelona) - GBP/USD has fallen around 90 pips in the last hour from 1.6415 to break 1.6360 level and post 1.6324 as fresh intra-day low. Pair has continued, thus, with its rejection from 1.6416, fresh 2-week high reached yesterday's session.

Currently pair is trading around 1.6330/40, 0.45% below today's opening price action.

Rajoo C, analyst at Precise Trader, comments: "The Hourly Oscillators are turning bearish and price is approaching the MA, so Cautious approach is needed for the bulls. Hourly Trend is Turning Down while 16525 level holds and Daily Trend is Sideways Down while 16625 holds, so expect the price to turn down any moment. The Patterns are suggesting the High may have already been seen on the Hourly Chart or it may test the high one more time. Conservative traders should look to Short near 16480 or strictly trade only at our levels. Aggressive traders look to Short while 16480-16525 level holds."